Impact of cultural capital on online trust

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IMPACT OF CULTURAL CAPITAL ON ONLINE TRUST

AUTHOR VARDA WAGTER

STUDENT NUMBER S4637615

MASTER BUSINESS ADMINISTRATION

SPECIALISATION MARKETING

PROGRAMME MASTER THESIS

ACADEMIC YEAR 2015-2016

DATE 10/3/2016

E-MAIL P.MANDHRE@STUDENT.RU.NL

ADDRESS A/F11 GANGA PARK SOCIETY

PUNE, MAHARASHTRA INDIA - 411036

PHONE +31 – 645994507

1ST SUPERVISOR Dr. V. BLAZEVIC

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ABSTRACT

Social networks are evolving and developing rapidly, and at the same pace the mode of engagement with social networks by businesses is also evolving and developing rapidly in order to safeguard their business interests. This warrant for a strong commitment by the organizations towards the personal data privacy and protection and could help business organizations to build trust and loyalty with their customers in the online world.

This study hence, is conducted to understand how different consumers react to organizations compromising online consumer’s privacy, evaluates cultural capital (cultural control) as a reason for the behavioral difference and as it impacts online trust. This research is on the different indicators of cultural capital that can lead to strengthen online trust among users of internet and managers of online businesses. Addressing the issue of a privacy paradox, it explains the privacy paradox and pros and cons of cultural capital. Problems of data privacy and how online companies jeopardize their security is discussed and measured through survey questionnaire (primary data) and from previous literature/research (secondary data). The research concludes by identifying how privacy concern affects online trust and the indicators of cultural capital.

During the research it is discovered that respondents with high level of cultural capital significantly have higher level of online trust. It was also found that privacy concern did not significantly impact online trust while cultural capital has a significant impact on the online trust. Some other interesting results derived from the demographic variables indicated that no significant difference exists between male and female respondents regarding their attitude towards online trust. Also results showed that age had no significance influence on online trust. Finally, recommendations are made on how to mitigate the impact of consumer’s privacy concerns on online trust, thereby helping organizations craft an effective strategy to gain online trust of customers.

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ACKNOWLEDGEMENT

I would first like to thank my thesis advisor Dr. Vera Blazevic for being so patient and a guiding beacon throughout. The door to her office was always open whenever I ran into a trouble spot or had a question about my research or writing.

I would also like to thank Mr. Clyde Johnston from ADAM FERGUSON COMPANY LIMITED for helping me shape the research idea and has constantly helped me with his view on various dimensions of trust.

I would also like to acknowledge Dr. Nanne Migchels as the second reader of this thesis and I am grateful for his very valuable comments on this thesis.

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I. INTRODUCTION

1.1 Preface

The European Union’s Data Protection Directive has defined personal data as the information related to any identifiable or identified person or a data subject. Personal data now days have been viewed as an asset which is traded for quality service and products. Markets for individual data are rising and better approaches for valuating people's information are being created. A characteristic says that 90% of information today in world is created in most recent 2 years. In the meantime, legitimate commitments over security of individual information and people's worries over its protection hold on (Spiekermann et al., 2014). This section traces a portion of the economic, technological, social, and moral issues connected with individual information markets, concentrating on the security challenges they raise.

Since the early years, the interactivity on web was limited. Mostly users read pages and articles published online. Despite its interactive potential, most usage of web was in read only mode and people demonstrating such behavior were called Lurkers. The participation of lurkers was limited to reading and they never post themselves. Lurking has two sides of the coin; the positive aspect is getting to know the community and gaining new knowledge and on other hand, a negative behavior and free riding have caused tragedy of commons. With Technological, developments in online security the people have started sharing their vital information online. Spiekermann et al., (2014) stated that individual information is the new oil of the Internet and the cash of the computerized world as data relating to people has turned into a vital resource in the advanced economy. People have turned into a critical resource in the advanced economy. Consistently, people the world over send or get 196 billion messages (Radicati, 2014), submit more than 500 million tweets on Twitter (Internet Life Stats 2014), and offer 4.75 billion bits of substance on Facebook (Noyes, 2014). A report by the Boston Consulting Group (2012) ventures that the segments utilizing individual information will jump in front of whatever remains of the economy and produce €1 trillion in corporate benefits in Europe by 2020. The World Economic Forum (2011, 2012) has portrayed individual information as another advantage class, and an unpredictable biological community of substances gathering, dissecting, and exchanging individual data.

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Individual information is seen as another advantage because of its potential for making included worth for organizations and shoppers, and for its capacity to empower benefits barely conceivable without it. Organizations use individual information for an assortment of purposes: diminish hunt costs down items by means of customized and communitarian sifting of offerings; lower exchange costs for themselves and for purchasers; conduct hazard investigation on clients; and increment promoting returns through better focusing of ads. Individual information can likewise be an item in itself, when it is caught with client produced content, as on account of online networking. Individual information can likewise get to be vital capital that permits organizations to infer prevalent business sector knowledge or enhance existing operations. This can emerge in better or new types of item advancement. Organizations can likewise fabricate upper hand or make market section hindrances by utilizing individual data to secure clients. There are different danger connected with individual information and different liabilities may emerge from the expansive accumulations of individual information and it can get to be focuses of cybercrime, specifically when they incorporate distinguishing or money related data. To relieve this danger, organizations must apply consistent exertion, modifying assurance innovation and authoritative procedures to ensure data resources and secure information trades. Be that as it may, notwithstanding when they do as such, a condition of zero danger stays unachievable. Associations that take a stab at consistence can at present succumb to information breaks, which in many wards involve immoderate rupture notices that harm a company's notoriety and business sector esteem (Acquisti et al. 2006). The degree of uncovered misfortune acquired through such ruptures is not really predictable. Its degree could be colossal, but not completely traceable.

1.2 Problem statement and research questions

Past researches conducted on online transactions gives insights on misuse of personal information supplied to social media platforms leading to data breach and the most common explanation for this socially active indicator is conventional cultural approach, like norms, values and their impact on different moral standards of society. Thus study is focused on finding ways the consumer release vital information as they interact on any social networking platform and further get exposed and their cultural values.

Against the foundation of the business sector guarantees and in addition financial, social and political dangers, this study reveals some insight upon the scholarly point of view of individual

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information markets, talks about where these business sectors stand, legitimately, in fact and morally, and highlights the significant inquiries that business sector players and strategy producers will ostensibly need to confront in taking care of them.

Researchers foresee individual information markets since the mid-1990s (Laudon, 1996). At the point when the thought was initially proposed, numerous individuals from the scholastic group responded warily to it, under the contention that individuals' protection concerns and their lawful right to security would challenge the treatment of individual information as a benefit class (Acquisti, 2005). To numerous researchers, it appeared as though the moral right to security would be non-moral to the general thought of business sectors for individual information (Samuelson, 2000).

While numerous still consider security as an unavoidable human right, keeping in mind protection upgrading innovations have been intended to ensure it, information markets have created the other way. Because of Internet clients' clear solace with sharing their information, more associations today participate in the exchanging of purchaser information, working in legitimate dark zones with regards to taking care of individual data resources. Exchanges around more honest to goodness individual information markets have as of late risen, pushed by persuasive worldwide on-screen characters. In the US and in Europe, it is currently seriously talked about whether individual information could be seen as "property" (Spiekermann, 2015). Researchers around the globe have begun to consider how individual data could be valued (Spiekermann et al. 2012). This has made a trust deficiency amongst customers and organizations in overseeing online data that should be tended to for online business benefit. In this way the inquiry concerning cultural capital of the nation come into the picture as it is a wellspring of qualities in people. The term Cultural Capital is generally utilized as a part of sociologies (Warde and Savage, 2009). The term has been examined by various creators (Goldthorpe, 2007; Savage et al., 2005, 2007; Skeggs, 2004). Cultural Capital is for the most part characterized as the social non-money related resource of the nation that advances development inside social strata past monetary means. Bourdieu (1986) have characterized cultural capital as information of individual to translate different cultural codes. The capable practices of the subject of the nation are reliant on the wealth of its cultural capital. The aim of the study is to have a unique look at cultural capital as a feature of potential online customers and internet users. The literature and theories available are more philosophical and could be truly said as an

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intellectual debate, defining cultural capital as an asset of individual or society. This research study will define its practical importance. People interact online with different intentions varying from entertainment, friendship, learning and chatting, business and so on and so forth. Exchanging information or compliance with requirements of profile building brings different advantages and potential threats.

The researches questions that I seek to answer are the following:

1. Is there any relationship between privacy concerns and online trust? If yes, then what is the nature of that relationship?

2. How cultural capital does impact online trust?

3. Does cultural capital affect the relationship between privacy concerns and online trust?

1.3 Theoretical Relevance

This is the age of information sharing as the activities that were once private or imparted to the few now leave trails of information that uncover our interests, attributes, convictions and goals (Samuelson, 2000). We impart utilizing messages, writings, and online networking; discover accomplices on dating destinations; learn through online courses; look for reactions to ordinary and delicate inquiries utilizing search engines; read news and books in the cloud; explore lanes with geo-following frameworks; and commend our babies, and grieve our dead, on online networking profiles. Margulis (2011) has clarified three most imperative speculations of privacy to be specific Altman 1975, Westin 1967 and Petronio's 2002. Out of these, most pertinent hypothesis in today's situation is Petronio's Communication Privacy Management (CPM) hypothesis otherwise called Communication limit administration that is composed on the proof based comprehension of the way individuals settle on choices about uncovering and hiding private data.

The current research is an attempt to make contribution further to CPM. The sharing of information online is a consumer preference that is exhibited from their personal characteristics. The current research tends to add up the existing pool of examination on online information sharing and security concern which may be influenced from their cultural capital.

1.4 Managerial Relevance

Online Trust, privacy, capital culture and security are ideas that are seen to influence buyers' ability to utilize e-business. As a result of wild rivalry and the straightforwardness with which buyers can change the e-merchant they are utilizing, e-sellers need to create administrations that

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buyers see as trustworthy. One approach to do this is to manufacture a solid security stage where purchasers' points of interest would be kept safe furthermore assemble a solid brand to pull in shoppers. There are additionally different approaches to persuade shoppers about the wellbeing of the e-administration. For instance, keeping in mind the end goal to mitigate the dangers buyers saw as being identified with e-administrations, e-sellers can offer a safe approach to pay for the items or administrations offered (maybe not the most helpful, but rather the most secure path is to give a chance to pay by invoice), which can charm those purchasers who see the most dangers in e-shopping. Likewise, outsider checks, by PayPal accounts or a bank, for instance, can diminish dangers and increment trust. In the feeling of privacy, customers would prefer not to enroll in each administration, since they fear what will happen to their own data. Therefore, if enlistment is not totally required, then maybe it is not required. The misconception of why purchasers need to enlist could bring about some suspicious about the trustworthiness of the e-merchant. Obviously, in a few services it is important to gather customers' data keeping in mind the end goal to finish the request, yet in these services as well, it could be helpful to offer a probability for the customers to get acquainted with the service (i.e. to test the service's usefulness, to peruse the items) without enlisting. This sort of plausibility could expand purchasers' discernment about the trustworthiness of the e-service. Through the current study the researcher has made an attempt to understand the relationship between the online trust (DV), cultural capital (IDV) and privacy concerns. (IDV). Also an attempt has been made to see how these two independent variables affect the dependent variable ‘online trust’. This study will be useful for websites they can understand the apprehensions the consumer may have while sharing their information and they may strategize their processes according to it.

1.5 Scope

The scope of this thesis is limited to the focus on the effect of cultural capital on online trust and bid it as it may, it further seeks to understand how different consumers react to organizations compromising online consumer’s privacy, evaluates cultural capital (cultural control) as a reason for the behavioral difference and as it impacts online trust. Also it highlights theories that follow up the difference in online presence of consumers.

1.6Aims and Objectives This research study will explore:

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ii. Relationship between cultural capital and online trust.

iii. The effect of cultural capital on the relationship between privacy concern and online trust.

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II. LITERATURE REVIEW

2.1 Overview

With the growing span of the Internet, the increase of bandwidth, and the improvement of simple to-use webpage creation programming, an expanding number of purchasers are homesteading on the Net by staking case to these advanced situations (Rheingold 1993). The real number of individual Web locales in presence is obscure in light of the fact that individual Web destinations are facilitated on a wide range of Internet assets, including business, legislative, and instructive Internet Service Providers (ISPs). Further muddling matters, singular customers can post at different and frequently interlocking Web destinations. No authoritative measurement is accessible for the quantity of individual Web locales. Obviously, buyers are writing and posting individual Web locales and imparting through typical, advanced jolts. This consequently opens them to both information safe and information perilous online stage, as it is entirely hard to know which one is more individual information privacy cognizant (Hope, 2003).

2.2 Online Personal Data and Privacy

The intuitive way of the Internet has supported online correspondence for both social and business purposes. In any case, singular buyers contrast in their inclination to associate online with others (Blazevic et al., 2013). Though a great stream of research has explored media intelligence, the presence of individual contrasts in the utilization of various online media, that is, contrasts when all is said in done online social collaboration penchant, has so far gotten less research consideration. An individual's inclination to interface online influences numerous essential shopper showcasing practices, for example, online engagement and investment. Individual information is progressively considered as a tradable resource. Markets for individual data are rising and better approaches for valuating people's information are being received by online networking organizations (Gollin, 2015). In the meantime, lawful commitments over insurance of individual information and people's concerns over its privacy hold on (Gollin, 2015). This part diagrams a few, specialized, privacy and moral issues connected with individual information markets, concentrating on the privacy challenges they raise.

Presently a days, individuals convey utilizing messages, writings, and online networking; discover accomplices on dating locales; learn by means of online courses; look for answers to inquiries utilizing search engines; read news and books in the cloud; explore roads with

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following frameworks; and praise our infants, and grieve our dead, on online networking profiles. Through these and different exercises, we uncover data, both purposely and unwillingly to each other, to business elements, and to our legislatures. The observing of individual data is omnipresent; its stockpiling is so sturdy as to render one's past undeletable. Going with the increasing speed in information gathering, are unfaltering headways in the capacity to total, break down, and draw delicate derivations from people's information. Both firms and people can profit by the sharing of one’s concealed information and from the use of progressively complex examination to bigger and more interconnected databases (Gollin, 2015). Then again, the potential for individual information to be mishandled, for financial and social segregation, shrouded impact and control, pressure, or oversight and narrow minded interests is disturbing (Ramanan, 2014). The disintegration of privacy can undermine our self-governance, not only as shoppers but rather as residents (Gollin, 2015).

Sharing more individual information does not as a matter of course dependably decipher into more advance, proficiency, or balance (Billings, 2011). As a result of these, there has been significant verbal confrontation about people's capacity to explore a quickly developing privacy scene, and about what, on the off chance that anything, ought to be done about privacy at a policy level (Lesk, 2012).

2.3 Consumer Perspective of Privacy

The high level of growth in the usage of social networking sites like Facebook, Myspace etc is unprecedented. In parallel with other socio-psychological issues there some instant consequences of profiles made on SNS. Figure below shows the rate of Facebook users in year 2011-2012. A trend in using Facebook is at 80% among teenagers and same is growing even in the age group of 45+.

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Fig. 2.1. Shocking New Social Media Facts. Source: businessesgrow.com

The increasing instances of online frauds, deceptions and identity thefts have further led to the growth of security concerns and inaccessibility, limiting the transactions furthermore (Norberg, 2007). In addition to online business the growing use of SNS for personal relationship building, chatting and entertainment purposes, chances of privacy loss is raised. According to Edison research, rate of people concerns for privacy rose from year 2011 to 2012.

Fig. 2.2. Shocking New Social Media Facts Source: businessesgrow.com

SNS addiction force users to agree upon the cost of privacy. Exposing privacy results in reduction of online trust. So the question arises, how to reduce the privacy concerns.

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2.4 Theoretical Background

To reinforce the theoretical premise of this domain and toss light on further research, a coordinated theoretical framework is proposed. This part diagrams the connections between privacy predecessors, privacy conviction, privacy-driven behavioral goal and privacy conduct on promoting premise. A large portion of the connections (either constructive or antagonistic) between ideas/builds are plainly indicated in the comparing writing, albeit a few ideas, for example, identity qualities, may have changed impacts relying upon the specific identities contemplated.

To contemplate the development of online shoppers' data privacy concern and its impact, researchers from alternate points of view connected numerous speculations in research. To date, there has yet to be a precise survey and coordination of the speculations in writing. The ascent of online networking application ubiquity is expected to a great extent to intuitive correspondence. It has been contended by researchers, earlier research on the intelligent capacity of the diverse correspondence media ought to be supplemented by an emphasis on individual collaboration inclinations in light of online trust. Based on the theory of equal motivational circumstance in marketing (Mowday, 1991), online trust is an individual contrast that clarifies the potential level at which one individual will partake in an online association and someone else won't, given comparable access and motivational conditions. In online correspondence, accomplices might be outsiders. This is frequently the case in online groups, subject gatherings in online informal communities, Internet examination board. While attribute based contrasts are relied upon to shift between people, they ought to be fairly steady crosswise over circumstances.

This consistency crosswise over circumstances, notwithstanding, does not imply that people will dependably carry on the very same route paying little mind to setting. Individuals can stay unknown online, regularly expecting monikers or complete online personae. This abnormal state of obscurity is normally in light of morsels of negative trust by online client, accordingly they rather enroll on conceivable grounds with wrong subtle elements which can have both positive results (more freed conduct) and negative outcomes (more forceful conduct).

The degree and nature of a wide assortment of online purchaser practices, for example, blogger correspondence systems (Kozinets et al. 2010), the utilization of individual web space (Schau, 2003), the trust to evoke self-revelation through PC intervened channels (Moon 2000) and the arrangement of aggregate expectations in online groups (Bagozzi, 2000) are supported by the

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hypothesis of 'general online social communication penchant,' expressed as an individual's characteristic based inclination to take an interest in online associations (Blazevic et al., 2014). Much research has been led from different theoretical points of view on people's concerns for data privacy in the e-business environment. Such concerns reflect online purchasers' stresses that their own data could be improperly gathered, kept up, got to, or utilized by online traders without their assent (Williamson, 2010). Purchasers who are worried about online data privacy would take defensive activities to decrease the dangers, for example, declining to give data to a site, giving wrong data, or expelling data from a site. These activities affect online shippers that depend on client data to give customized items and administrations, examination, and mix. Second, while the hypotheses address privacy issues from alternate points of view, there are associations among the speculations that should be perceived (Solis, 2010).

Theories that explain the origin of privacy concern are highlighted; they are the agency theory and the social contract theory. Both recommend that instabilities, for example, privacy concerns, exist in online exchanges because of deficient data of online dealers' deft conduct with respect to client data. Due to the privacy concerns, clients are reluctant to uncover data online (Solis, 2010). The relationship between privacy concern and data divulgence is further determined in the hypothesis of contemplated activity and the hypothesis of arranged conduct. Privacy concern is not by any means the only element that impacts data exposure; different variables, for example, saw benefits, additionally have an effect.

The agency theory (Eisenhardt, 1989) plots the value-based relationship (called office relationship) between an important and an operator, who are both self-invested individuals. It recommends that as data with respect to the conduct of the operator is frequently inadequate and awry, the key can't completely screen the specialist's conduct prior and then afterward the exchanges, which gives the operator the chance to serve self-interests rather than those of the foremost. To decrease the expense brought on by entrepreneurial practices of the specialist, the central needs to cause extra observing cost (Solis, 2010).

In online exchanges, as the shopper (i.e., the main) gives individual data to the dealer (i.e., the operator) for products and administration, the organization relationship is as a result. As both are self-invested individuals and data asymmetry supports the online shipper who gathers and uses client data amid and after the exchanges, instabilities, for example, privacy dangers exist with respect to the data use (Solis, 2010). In this manner, the buyer needs to choose whether to give

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data to take an interest in the exchanges and assuming this is the case, how the potential dangers can be alleviated. Then again, laws and controls, (for example, the Fair Information Practice or FIP) exchange a portion of the organization expense to the trader by obliging them to apply mediations to reduce clients' privacy concerns, including the utilization of privacy arrangements and outsider affirmation (Williamson, 2010).

The social contract theory gives another vehicle to pinpointing the starting point of clients' privacy concerns (Solis, 2010). It recommends that the arrangement of individual data to an online trader includes not just a monetary trade (i.e., acquiring products and administration) additionally a social trade (i.e., setting up connections), so that the social contract, characterized as the usually comprehended commitments or social standards for the gatherings included, is basic to the counteractive action of the vendor's shrewd conduct to abuse client data.

Privacy calculus is a typical way to deal with concentrating on the joint impact of restricting powers on privacy observation and conduct (Solis, 2010). The hypothesis recommends that a man's goal to uncover individual data depends on an analytics of conduct (i.e., privacy math) in which conceivably contending elements is said something light of conceivable results. In particular, shoppers play out the danger advantage examination in the privacy math and choose whether to reveal data in light of the net results (Bagozzi, 2000).

The utility boost hypothesis is the variety of financial trade speculations in the social trade area (Solis, 2010). The fundamental of the hypothesis is to expand the aggregate utility or fulfillment by a man. Regarding data privacy, it portrays the utility capacity of data divulgence as the contrast between expected advantages, (for example, fiscal motivation and customized benefit) and expected costs, (for example, buyer privacy concerns and hazards), and recommends an ideal or balance point between the two, which decides the measure of data the individual will uncover. Another methodology for online firms to diminish clients' privacy concerns is to expand the social nearness of the site. Social nearness alludes to the measure of the consciousness of different people in the correspondence connection, and the hypothesis proposes that for a given undertaking, the level of social nearness ought to coordinate the level of interpersonal contribution required for the errand. For instance, video-conferencing has a more elevated amount of social nearness than messaging, which permits two people to see and hear each other, and is reasonable for personal data trade between associates (Solis, 2010). As far as correspondences on the sites, the hypothesis proposes that the likeness between the online

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environment and the physical connection with a genuine operator would make a feeling of social nearness and makes the site a trustworthy social performing artist, which would alleviate privacy concerns (Bagozzi, 2000).

Personality theories (or trait theories) recommend that identity characteristics, alluding to an individual's steady mental properties, would potentially affect his/her privacy recognition and conduct (Solis 2010). The relationship amongst identity and conduct is generally talked about in behavioral research, and as far as online data privacy, countless attributes has been examined, including: skeptical distrust, distrustfulness, and social feedback; social mindfulness; the Big Five identity qualities (extraversion, appropriateness, good faith, neuroticism, and insightfulness; and psychological disposition to privacy (Bagozzi, 2000).

2.5 The Privacy Paradox

Social media applications allow consumers to consume, create and exchange content, and organizations exploit interactive social media opportunities to engage consumers more effectively. At the same time, however, the distribution of participants in online environments is certainly skewed. There are some consumers who predominantly use social media sparingly, and avoid active engagement in social platforms (Daniels et al., 2003). According to Acquisti (2010) social networking sites provide great benefits for internet users all over the world. People can stay in touch, inform themselves on what is happening, or share with others what they are doing. Despite the great popularity of social networking sites like Facebook, more and more criticism arises in Europe toward permanently changing privacy regulations and easing of data protection (Lesk, 2012). In order to support users in their right of privacy in the Social networking sites, it has to be evaluated whether the problem is on the operator's side or on the users’ side. A problem for the user could be insufficient knowledge or control of the options for privacy settings in the own Social networking sites profile. In this case, need of action implies enhancing users’ competencies or the user interface of the Social networking sites. A problem on the operator's side could be that users fear an operator, e.g., sells personal data to other big companies (Guang-li, X., et al, 2008). In this case, policy regulations have to be developed to protect users. Researchers of social networking sites define the privacy paradox as “a discrepancy between privacy concerns and actual privacy settings (Barnes, 2006).

When asked, consumers often state that they are concerned about their privacy, however, their behavior does not mirror these stated concerns. Companies involved in e-commerce and

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entertainment businesses offer free user accounts and in return they ask for consumers’ personal information including questions about life style, food preferences and many more. Users fill in the online forms and generally ignore the terms and conditions of agreement page for opening the account and just click on agree/accept button. Result is they expose themselves to others even if they do not want to. Studies found that Social networking sites users give a lot of private data on open profiles. For example, researchers investigated the Facebook profiles of more than 4000 understudies and found that exclusively a little rate had changed the default security settings. Thelwal broke down more than 20,000 MySpace profiles and found that exclusive 27% were set to private (Thelwall, 2008). Private data of internet users visible to public leads to misuse of personal information.

There is the need to know the sources these marketing and advertising agencies receive consumers’ contact number or email addresses from. In response to that, Thelwal (2008) researched and discovered that, platforms like Social networking sites and other sources where one intentionally or unintentionally gives information are prone to data breaches and compromise. This scenario leads to lack of trust among Users to Website users receiving unsolicited messages and seeing their snaps and other personal information on different unknown and unauthorized platforms begin not to trust on virtual friends and businesses. Therefore, the focus of transparency in business dealings and exchanges holds incredible significance in the corporate world. However, the privacy Catch 22 in these dealings makes an issue of identity which promptly influences online trust in such business dealings. There are a few instances of extortion and tricking that have been seen online (Awad, 2006). Because of the huge support of online socialization and client produced content, online informal communities online interpersonal organizations have figured out how to end up an essential piece of our everyday life. Organizing potential outcomes, acquiring social data and backing and also building up and keeping up social associations are reasons why clients take an interest (Zhang et al.2011). Additionally, the business capability of online informal organizations must not be ignored, as they effectively associate organizations and (potential) customers and the other way around (Brown et al.2007).

Online informal organizations are spots for self-expression, give social joy and trigger interest and additionally enthusiastic and hedonic encounters (Hart et al.2008). Be that as it may, not just the expansion of cooperation rates amid the most recent years has been amazing; additionally the

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sum and kind of data informal organization individuals intentionally unveil. In spite of the fact that clients know about dangers and dangers connected with their online exercises, their concerns are not reflected in their genuine conduct. This marvel is otherwise called the "privacy Catch 22" (Barnes 2006) or "privacy quandary" (Brandtzaeg et al.2010). Data innovation pros push that long range informal communication seems to give a rich setting to criminal exercises and different offenses (Weir et al.2011). Proof from numerous OSNs shows that a great many informal community clients by and by don't waver to share their considerations, encounters, pictures, documents, recordings and connections in a situation that is to a great extent without security norms and practices. Clients really tend to trust other group individuals with ability, character, individual data and some even with cash loaning (Lai et al., 2008). Clients additionally tend to trust suppliers of interpersonal organization locales to keep their data and photographs private. From this it creates the impression that informal communication happens inside a (generally unjustifiable) connection of trust.

2.5.1 Privacy Concerns and Socio Economics

Some trust individuals' capacity to settle on self-intrigued choices about data uncovering and withholding. Those holding this perspective tend to see administrative assurance of privacy as meddling with the on a very basic level kind direction of data advances and the advantages such innovations may open (Guang-li, X., et al 2008). Others are worried about the capacity of people to oversee privacy in the midst of progressively complex exchange offs. Conventional devices for privacy basic leadership, for example, decision and assent, as per this point of view, no more give satisfactory insurance (Guang-li, X., et al 2008). Rather than individual duty, administrative mediation might be expected to adjust the interests of the subjects of information against the force of business substances and governments holding that information.

2.6 Online Trust

Ramanan (2014), in his research article stated that online trust is an accumulation of buyer observations as confidence, conviction or thought of trusting somebody on various electronic stages. Online trust is a propelled type of trust as the shopper puts his/her confidence in somebody that is not physically open (Grabner, 2009).

At this crossroads it will be of awesome advantage to characterize trust in a few points of view. Iachello et al., (2013), trust is both and enthusiastic and legitimate act. Inwardly, it is the place you open your vulnerabilities to individuals, yet trusting they won't exploit your openness.

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Ramanan (2014), legitimately, it is the place you have evaluated the probabilities of increase and misfortune, ascertaining expected utility in light of hard execution information, and presumed that the individual being referred to will act in an anticipated way. By and by, trust is a touch of both (Ramanan, 2014). Trust is a normal for a relationship (Barney, 1994).

Noyes (2014), as of late, online interpersonal organizations have increased extraordinary notoriety and are currently among the most oftentimes gone to locales on the Web. Despite the fact that security benchmarks and practices are an expanding center of consideration, members still uncover awesome measures of delicate data in the Web environment. Clearly, online long range interpersonal communication happens in a setting of trust. In any case, trust is an idea with numerous aspects and measurements (Noyes, 2014). To encourage trust research in online interpersonal organizations this article goes for clearing up the part of trust and the pertinence of features of trust, social capital and embeddedness in online informal communities (Radicati, 2014). In the first place, the emphasis is on the individual's choice to trust and on procedures through which trust really develops.

Therefore, trust is seen as a fundamentally inserted resource or a property of connections and systems that shapes association designs inside online informal organizations (Mont, 2011). An applied framework is created that coordinates theoretical ideas from the trust writing, informal community and social capital theory (Schwartz, 2004). Trust has been seen as a piece of legitimate setting and as a herald of investment. Trust is a kind of yearning that facilitates the anxiety that one's exchange associate will act entrepreneurially. Right when two social events begin to trust each other, they end up being all the more prepared to share their benefits without focusing on that they will be misused by the other party. Thusly, accommodating behavior, which surmises the exchange or blend of benefits, may create when trust exists. Solove, (2005) emphasized that new wellsprings of value are created through novel associations of advantages, especially through better methodologies for exchanging and uniting resources. To improve new or things, firms need to reallocate resources, to join new resources, or to solidify existing resources in new ways. Similar disputes appear in the composition on legitimate progression (Spiekermann, 2015).

2.6.1 How Online Trust Grows

Online trust grows with the passage of time and frequency of interactions among internet users. Business to client or people interacting on internet for socialization put some stake in each other

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like sharing personal information, financial transactions or exchange of information on different topics of interest (Yang, 2015). The investigation of these procedures is likewise called online relationship promoting and might be seen as a solid showcasing instrument with regards to seeing the online trust component. Firstly, trust is a key-part for the social capital (a course of action) of all business sector associations, power associations and interest develop between firms, associations and people that originate from a strong sentiment having a spot and an exceedingly made point of confinement of coordinated effort standard of socially tantamount people and establishments (Capello, 2005). In this setting, plainly the change and business ability of a business or affiliation depends logically on how responsive the organization is towards social obligations and deeply involved with social activities. According to Tufekci, (2008), online managers look at online trust as:

i. Source of building organization image

ii. Improves user’s experience for online buying selling. iii. Quick interaction between business website and customers. iv. Enlarged potential customers.

v. Database development for strategic management and market perceptions. As it boosts their chances of having more online customers (Grabner, 2009).

In the investigation of sorts and bases of trust that takes after, the attention is on the individual's choice to trust and on procedures through which trust really rises. The relative significance of trust depends, among different variables, upon the many-sided quality and the connection of a choice or an activity (Grabner, 2009). We ought to take note of an incongruity here: despite the fact that online interpersonal organizations take into consideration associating with known companions, Web situations and online interpersonal organizations likewise accommodate namelessness, encouraging the arrangement of false or deceiving data and lacking or obstructing check components. In such circumstances of instability, trust can serve as a critical instrument to diminish the vulnerability and multifaceted nature of trades and connections. Trust can be seen as a "mental easy route" that empowers clients to expeditiously take part in trust-related practices, e.g. the arrangement of individual data. In the hierarchical trust writing, trust is for the most part characterized as a conviction or assumption about the other (trusted) party, or as a behavioral goal or eagerness to depend or depend on another gathering, combined with a feeling of powerlessness or danger if trust is abused (Rousseau et al.1998).

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In online social networks, trust is both a small scale and a large scale level marvel in which there is an exchange between the full scale system made by the (corporate) performing artist who outlined it and the miniaturized scale bunches shaped by the individual system clients (Lai et al, 2008). Other system members, the interpersonal organization webpage and the Web innovation would all be able to be considered as objects of trust (Grabner, 2009).

As to network members as objects of trust, the conviction of the online interpersonal organization member about particular qualities of different members in the online informal community, for example, their skill, capacity, uprightness, genuineness and altruism, will have outcomes for their trusting goals and practices. Alongside other system members, the OSN itself can be seen as an object of trust that grasps elements of an association (the system supplier) and also an innovation (the Internet as a transmission medium, or all the more particularly Web 2.0 advancements) (Grabner, 2009). Likewise Lankton et al, (2011) focused on the double way of trust in OSNs and accentuate that trusting convictions in an online informal organization connection cannot just identify with the ability, trustworthiness and consideration, reflecting interpersonal angles, however can likewise be coordinated towards usefulness, unwavering quality and supportiveness, reflecting parts of innovation.

To this point, trust has been dealt with as a situational develop. Be that as it may, trust can likewise be conceptualized as a cross-situational, cross-individual build, enveloping individual attributes of the trustor. Taking after the trust typology proposed by McKnight and Chervany (1996), this kind of trust is called dispositional trust. Mayer et al. (1995) incorporate a fundamentally the same as develop "penchant to trust" in their trust model. These builds have their foundations in identity brain research (Rotter 1967) and perceive that individuals create, through the span of their lives, summed up assumptions about the trustworthiness of other individuals. Dispositional trust is a stable inside gathering variable that not just influences trust towards different people or gatherings of people additionally towards specialized frameworks or interpersonal organization destinations (Faullant, 2008). All the more particularly, it can be expected that dispositional trust influences trusting convictions about the trusted item and the behavioral expectation or eagerness to rely on upon the trusted party. As indicated by McKnight et al. (1998) the effect of dispositional trust on trust towards different people or gatherings is considerably higher under less natural conditions, i.e. at the point when the circumstance, the sort of relationship and the gathering individuals are new or obscure. Correspondingly, it can be

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normal that there will be a more grounded impact of dispositional trust on trust in other system members and the informal organization webpage for people with almost no immediate involvement with online interpersonal organization than for experienced people.

2.6.2 Online Trust and Marketing

Subsequent to comprehension the ideas of online trust and privacy concerns in past parts the relationship among the two ideas i.e. privacy concerns and online trust is tended to here. The relationship between online trust on person to person communication destinations and the online relationship promoting highlights the properties of online trust. Seeing how buyers assess site trustworthiness is a basic variable for online sellers. The predominant perspective upholds a deliberative trust arrangement process whereby customers assess security declarations, return approaches, client criticism and so forth, inferring a very judicious fundamental trust math. Be that as it may, when gone up against with a choice involving hazard (i.e., offering delicate individual data to an obscure site), subjects gets to be dependent on their non-normal instinct. We embrace a double procedure thinking theory to understand these discoveries, and suggest that merchants consider acquainted thinking components when planning online interfaces. Most online social stages have for the most part negative outcomes for energetic adults' engagement and social capital.

2.6.3 Roots and bases of trust in online social networks (OSN)

The roots and bases of trust in an OSN are many. Trust researchers have taken a few ways to deal with characterize the sources and procedures in regards to the improvement of trust (Lewicki et al.2006). Trust wording and conceptualization in that capacity are not generally the same and not all creators expound on all potential bases of trust. Drawing from the general trust writing, imperative bases of trust in OSNs are quickly plot in the accompanying area. The point is not to build up another typology of trust bases yet to call attention to likenesses between various phrasings proposed by various creators (Grabner, 2009).

Trust in OSNs can have numerous sources despite the fact that not all bases need to become an integral factor in all circumstances. It bodes well to consolidate the dialog of various grounds or bases of trust with the point of view of trust as a dynamic idea that can be partitioned into various formative stages or stages, each with particular attributes (Lewicki et al.2006). Thusly, a lifecycle of trust in an OSN can be developed: the underlying phase of trust building, when OSN individuals enter the system, the phase of settling trust, when OSN individuals are as of now in

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the system and have developed trust, and the last phase of trust disintegration, when OSN individuals lose trust.

In the period of trust working, there are diverse bases for trust in a particular informal organization site and/or in other system members. Other than dispositional trust these bases incorporate clients' first view of trust-significant traits of the object of trust (other OSN individuals or the system site with its innovation highlights), judicious estimation of potential expenses and advantages of support, and institutional elements that are autonomous of the characteristics of different clients.

At the point when Internet clients visit and investigate an informal organization webpage surprisingly, their underlying trust can be construct basically with respect to first view of trust-important qualities of the object of trust (McKnight et al.1998). McKnight et al. (1998) alluded to discernment construct trust which depends in light of fast, intellectual signs or initial introductions, rather than individual cooperation’s. Subjective impression of system attributes, for example, size of the system, ebb and flow number of members online, talked about points, privacy and security, helpfulness and convenience of the system webpage can be considered as vital bases or predecessors of system trust in the period of introductory trust development and trust expanding on "self-researched" system locales. To start with impression of trust-significant properties can likewise come about because of classification procedures. Williams (2001) alludes to this trust base as class driven procedures or stereotyping. Generally characterized as a kind of mental alternate way, these procedures offer people the likelihood to spare time by applying arrangement methods. In light of the subjective results of class participation and in-gathering predisposition, people tend to trait constructive attributes, for example, trustworthiness, altruism, respectability and helpfulness to other system individuals. Introductory trust in OSNs likewise can create through transference forms that outcome in first view of trustworthiness. As indicated by Doney et al., (1997), the "expansion example" of trust improvement proposes that trust can be exchanged from one trusted "evidence source" (a man, the trustor actually knows and who has demonstrated her/his trustworthiness in past connections) to another object of trust with which the client has next to zero direct experience (Doney et al., 1997). Notoriety is viewed as a noteworthy driver for this sort of trust advancement (Moorman et al., 1993).

In the main formative stage, online trust can likewise be founded on normal count of potential expenses and advantages (Lewicki et al.2006). Lewicki (1995) named this as first stage math

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based trust. Correspondingly, Doney et al., (1997) discuss trust including a calculative procedure, when the trustor ascertains the expenses and rewards of another gathering picking between deceiving or staying in the relationship. This wellspring of trust ought to be more important in profession or business-situated online system administrations, which are all the more normally roused.

In establishment based trust, formal components are utilized to give trust that does not lie on individual attributes or on previous history of trade (Zucker, 1986). Organization based trust alludes to an individual's view of the structures (e.g. lawful and innovative assurances) that make a domain feel trustworthy (McKnight et al., 2002). A customer who is alright with the Internet environment and the security of its structures is liable to have more trust in a particular corporate performing artist on the Web, since s/he trusts that legitimate Internet security gatekeepers and specialized arrangements, for example, secrecy instruments, confirmation systems and access control components exist that ensure against loss of privacy, personality or cash.

After some time and persistent connections on an informal community site the judgments of a member about this particular system turn out to be progressively a component of the associations themselves. The trust-relationship may enter the second phase of trust improvement, which is ruled by trust in view of the trustor's information and comprehension about the trusted party coming about because of past communications (learning or experience-based trust) (Lewicki et al., 1995). Doney et al., (1997) depict the expectation procedure of creating trust that depends on rehashed collaborations and the trustor's evaluation of the other party's past conduct and revealed trustworthiness. Consequently, in the period of balancing out trust, components, for example, nature with the innovative elements and specialized instruments of the informal community webpage or fulfillment with past collaborations with other group individuals are vital precursors of online trust.

2.6.4 Trust as a governance mechanism in online social networks

The role of trust in online social systems can likewise be examined from an administration point of view that coordinates ideas of social system and social capital theory (Grabner, 2009). In this setting, administration identifies with the different types of planning exercises of every single part whereby the system offers a sorting out and supporting structure for relations between on-screen characters. As pushed by Puranam et al., (2009), trust can be viewed as an effective substitute to formal administration systems that permit trade connections to be framed and that

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endeavor to control advantage. The attention here is on examples and structures and not on procedures through which trust really develops. Theoretical dialogs in the social capital writing and ambiguous exact results propose that the idea of trust assumes a crucial part in systems, yet the particular capacity is not absolutely obvious (Gubbins et al., 2008). A few researchers consider trust to be a precursor of social capital, different researchers consider trust as a measurement or component and still others as a result of social capital (Glanville et al., 2009). All the more light is shed on chose aspects of the mind boggling relationship between trust, social capital and online social systems.

Social capital is a term with various definitions in numerous fields and can be seen as an umbrella theory that unites such ideas as social systems, trust, social trade, social assets, embeddedness and social bolster (Adler et al., 2002). Social capital identifies with the advantages got from social connections and collaborations, as passionate backing and access to thoughts and non-repetitive data (Ellison et al.2011) and ought to be seen as an essential element in regards to friendliness in online social systems (Brandtzaeg et al.2010). In spite of the fact that there is much exchange and puzzlement around the idea of social capital, most researchers concur that social capital alludes to interest in individual connections or social structure that encourages the accomplishment of individual or aggregate objectives (Glanville et al., 2009). As Graddy (2009) and Glanville (2009) elaborate in their calculated surveys, among the most powerful researchers on social capital, Coleman (1988) underscored the auxiliary and system qualities of social capital, while Fukuyama (1999) concentrated on the social and trust parts of social capital. Putnam's definition speaks to an amalgamation of the system and trust perspectives of social capital. The center thought of social capital is that social systems have a worth. Social contacts influence the profitability of people and gatherings (Putnam 2000). Correspondingly, social capital is the entirety of the real and potential assets implanted inside, accessible through and got from the system of connections controlled by a person. In such manner, the idea of social capital can be considered as an approach to portray the quality that can be gathered through a social system and from the social assets of the performers implanted inside that system (Gubbins, 2008).

2.6.5 Trust and social capital in online social networks

Keeping in mind the end goal to unwind the very intricate and interlaced ways to deal with social systems and social capital, the accompanying segment will relate the diverse measurements of

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those builds to different wellsprings of trust. We propose a theoretical framework to comprehend the interaction of various sorts of embeddedness and social capital upgrade and the pertinence of various stages and wellsprings of trust. The intention is to take a gander at online social systems from a social system and social capital point of view by setting more noteworthy accentuation on trust, in this way adding to theory-expanding on trust in online social systems.

The relationship between social capital and trust is not unidirectional but rather complementary. From one perspective, the trading of social and enthusiastic backing and significant data in (online) social systems would be constrained without trust, both in the system base and the other system members. Where there are large amounts of trust, individuals are all the more ready to give backing and go out on a limb in data trades (Krasnova et al.2010). Subsequently it can be accepted that trust will influence the support in online social systems and the social capital that can be accumulated both from the system itself and the assets that might be prepared through the system through its impact on making esteem. Then again, the translation of trust as an outcome of (different measurements of) social capital is additionally conceivable. Online social system ties can be worked for an assortment of reasons and where the trading of helpful data succeeds, trust might be attempted to take after.

As specified over, a basic and a social part of embeddedness can be recognized. Basic embeddedness alludes to positional properties of systems and can be related either with inadequate or thickly associated systems (Rowley et al.2000). As per Granovetter (1973), feeble ties are more probable identified with inadequate systems and free structures. Subsequently, clients that are approximately associated inside an online social system are empowered to get to remote locales inside the system and have the likelihood to acquire new, non-excess and inventive data without being blocked by unbending administration structures. Firmly associated clients will along these lines have more access to top to bottom however in the long run excess data. Summing up, the clients' example of ties can be a marker of their capability to get to wanted data assets (Nieves et al., 2012).

Both thick and scanty systems and feeble and solid ties have their advantages and obstructions with respect to the improvement of the clients' social capital. The proper sort of social capital for online social system clients to implant themselves in relies on upon the connection and the clients' data and trade prerequisites. Rowley et al. (2000) contend that the impact of auxiliary and social embeddedness on firm execution relies on upon the ecological setting and the data

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necessities of the firm. They recognize investigation of new, questionable options and abuse of existing assets. In investigation the attention is on the interest and procurement of new learning (Gupta et al.2006). Henceforth, social capital coming about because of investigation may be decidedly identified with frail ties and inadequate systems. In abuse the emphasis is on refinement and augmentation of existing data that will give further information in a specific zone. Misuse requires a more profound comprehension of particular data and consequently may be better extricated from thick system structures and solid ties. Uzzi (1997) makes a comparative point: if the undertaking requires trust and co-operation, installed ties with rehashed trades between a little number of accomplices are favored, yet in the event that the errand requires reasonability and effectiveness, relations in meagerly associated systems with progressively various accomplices are more compelling.

Trust sources and stages can be identified with the sorts of embeddedness and methods of social capital upgrade in online social systems. In scanty systems, which are more satisfactory for social capital upgrade through investigation, starting trust is of vital significance since it will figure out if the client will really take an interest and take part in the online social system. Thus, first impression of trust-applicable characteristics of the online social system will be critical wellsprings of trust, alongside trust in the online social system supplier and its innovation. Unexpectedly, in thick systems, which are more proper for social capital upgrade through misuse, the adjustment of trust is of essential significance, as online social system clients are as of now acquainted with procedures and standards inside the system and its representing instrument. Along these lines, here the attention is on trust sources established in past encounters with the online social systems (i.e. learning and experience-based trust) cultivating proceeded with support and more profound inclusion.

Trust in an online social system connection is nearly connected with the social part of embeddedness, which alludes to resources that are established seeing someone. Trust can be found inside feeble ties, which will probably be "nearby scaffolds" to inaccessible others having one of a kind data than solid ties (Rowley et al.2000). Feeble ties will be more advantageous to investigate new and selective learning (investigation method of social capital improvement). Thus, a low level of excess of the client's systems ties can be connected with new open doors (Nieves et al., 2012). Here the emphasis is on trust building. The client needs to evaluate trust-applicable properties of other online social system individuals. She/he can make for occasion

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levelheaded estimations of potential expenses and advantages of social trades with other system individuals, what may be the situation particularly in profession arranged systems. In the event that the client has officially created solid ties with other system individuals, the period of trust balancing out is more critical. In this circumstance trust can be founded on encounters from past associations with different individuals from the online social system (experience-based trust) or on joint qualities (i.e. ID based trust). Access to top to bottom and particular (and in the long run repetitive) data may be particularly given in kinship arranged systems or systems worked around shared interests.

2.7 Cultural Capital: Consumers perspective

Cultural capital is an arrangement of non-financial social qualities, which administers any cultural gathering as far as its class, structure and social standing. Online trust is reliant on cultural capital that may shift from various cultural gatherings and our point is to assess the elements that influence the relationship between privacy concerns and online trust. All things considered, as a shopper of an item, Consumption can be a characterizing and self-expressive conduct. Individuals regularly pick items and brands that are self-pertinent and impart a given character: Consumption serves to create a craved self through the pictures and styles passed on through one's belonging. To proceed with this part, it will regard characterize what cultural capital is for better understanding, and relating online web and social media support from purchaser's point of view. This will give keen data which might be used among different cultural gatherings existing and how each of these gatherings takes online trust in their own social setting. Along these lines online purchasers make their personalities substantial, or self-present, by partner themselves with a specific of an arrangement of social media.

All the three components of cultural control are defined as (Joinson, 2007).

1. Knowledge

2. Information 3. Prestige

Above features of cultural control help users to assess the privacy risks on internet and hence improve their privacy while interacting on different online forums. Online Trust highly depends on Privacy Concerns. Theories and literature proves strong relation of culture with education, social status and skill set one possess. People with high cultural capital possess their opinion about issues and conveniently face public as well as remain in lime light. The advantages they

Impact of cultural capital on online trust